Keeping customers afloat

James “Bud” Heaton was a teacher-turned-contractor in 1992 when he switched careers for a second time, seeing an opportunity in anchors, waterproof paint and nylon rope.

The veteran sailor and boater knew that Newport’s only marine-supply business had recently shut its doors. In the midst of a national recession, he opened Newport Nautical Supply, strategically located outside the main tourist areas on Admiral Kalbfus Road.

His son, Chris, at the time a recent graduate of Northeastern University, joined him in the family business.

Twenty-three years later, their business is still going strong, having overcome challenges that include the arrival of two national marine-supply retailers, and the addition, then closure, of a second store location.

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Newport Nautical Supply remains on Admiral Kalbfus Road, in its original location, where the two Heatons work closely with customers, based on their knowledge of what boaters and sailors need in their vessels.

The elder Heaton, a former commander of the Newport Yacht Club, jokes that his store carries it all, from A to Z, or from “anchors to Zinc,” the latter a metal protector which is needed to safeguard a propeller shaft.

The 7,000-square-foot store has thousands of items, including gear for boats and sailors, as well as commercial fishermen and weekend tourists. Most of the business is aimed at retail customers, but he also sells wholesale to businesses, for a slight discount.

His prices are competitive, often lower, than his national competitors, who have larger overhead costs, he said. And he and his son value the relationships they’ve formed with customers over the years, something that he thinks contributes to their repeat business.

In the first year of operation, to stay afloat in the winter months when the seasonal boating industry goes into hibernation, Heaton began a consignment program. He reached out to boaters for equipment they might want to consign.

A boater who contributes materials or items to Newport Nautical can get 75 percent of its value as store credit, or 60 percent as cash back. Either way, the store keeps the remainder.

People come to peruse the consignment inventory, looking for deals in rehabbing their boats, but also for décor. The shop has become a destination for interior designers who want to decorate in a nautical theme.

Prop managers for the television and film industries have made the trek, Heaton said. Some of the store’s inventory was sold to the production team for “True Lies,” a film starring Arnold Schwarzenegger.

But most customers aren’t shopping for Hollywood. Instead, the business has been able to tap into the yachting industry based in Newport, as well as smaller recreational boating needs.

“We have a lot of people who just want to get out on the water and do a little fishing, and take care of their boats 100 percent,” Heaton said. •

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